e announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade. >> political retreat. adam: responding to intensified pressure fro disgruntled people. obama offers his fix for obamacare be at lori: she is close to becoming one of the most powerful women in the world. janet yellen grilled ahead of her fed chair confirmation. in minutes we will have the blowback of the fed bond buying program. adam: a new warning raises a red flag of pension liabilities the largest in his abilities in the united states. we are grilling down with reports author. lori: let's get things started with breaking news.

president obama saying his promise to keep the insurance is on him announcing a plan allowing americans to keep insurance plans that have been canceled. rich edson live at washington, d.c., with the very latest. rich: this plan would allow insurance companies to reissue their plans that they have canceled from 2013 and allow them to reissue those until 2014. however in order to do so state insurance commissioners would have to sign off on that in each state and your insurance company would have to reissue that plan. we heard from the health insurers saying allowing that could destabilize the market and result in higher premiums for consumers. they have already set their prices for next year, and they basically have base that pricing on the consumption that everyone would have the new obamacare plans. as for the president making the promise you could keep your health insurance that turned out

not to be true, the president explained it. president obama: my expectation was that for 98% of the american people, either it genuinely wouldn't change at all, or they would be pleasantly surprised with the options in the marketplace. and that the grandfather clause would cover the rest. that proved not to be the case. and that's on me. rich: also asked the president whether or not the website would definitely be up and running by november 30, the president would only say he can't guarantee it an experience would be noticeably better than it was on october 1, which he admittedly said was a pretty low bar. if formal care act politically has been a burden on a number of democrats especially those running for reelection next year. back to you. adam: we want to check stocks right now. nicole petallides watching stocks for us. they have quite a bit of news to

digest. nicole: they have been watching every bit of it. janet yellen, we're watching that. also hearing from our own president, president obama on health care. two very big topics. the market has played wait and see, in a range of about 15 points on the dow. the record day on wall street. the nasdaq hit a high before pulled back in the red. back to you. adam: thank you very much. lori: janet yellen wasting no time firing back at critics of the fed taper delay. take a listen. >> i think there are dangers frankly on both sides of ending the program or ending accommodation to early.

there are also dangers that we have to keep in mind with continuing the program too long or more generally keeping monetary policy accommodation in place too long. lori: so, former executive vice chairman president of the bank of atlanta. pleased to welcome him back to our show. what are your thoughts on janet yellen as the nomination, do you have any concerns? >> no, not at all. this is the kind of hearing you would see when everybody has made up their mind. i thought they were pretty gentle with her overall. not exactly what i expected. lori: one of the posts that stood out to me when asked if she was afraid that the taper would unsettle the market, i don't think the fed can or should be a prisoner of the market, so how do you interpret that statement when it comes time for exit?

>> i think there's a little bit of a disconnect there because the questioning that focused on whether or not the fed was a prisoner by backing off, she has essentially admitted they did. she hopes they won't be a prisoner of the market, but she did admit we would see volatility. lori: it is safe to say we are seeing some of that now, in the rates market saying boy, the treasury market may be taking monetary policy in its own hands by tightening. how is the fed managing this and how are they looking at this move in bond rates? >> had not seen any change in the kind of frederick that has been going on. some people saying that it will be december, others saying maybe we had to wait longer, so the rhetoric has not called the market at all, and probably has not forced it to push out, way out when the taper and will begin. we know from the past behavior,

when it starts it could be very volatile and everybody is very concerned about that. we are seeing a very predictable reaction, actually. lori: you characterize it now as very volatile, will it be similar as we saw back in may when bernanke hinted at a commencement of taper or will it be more violent? how can we prepare for that? >> what we're looking at is a minimum. what we saw was a thought of a tapering, if you believe the federal funds rate ultimately is going to get to somewhere around 4%, which is where the central tendencies are, why wait if you you're in the market? i'm nothing the market would go to 4% of the federal funds or short term interest rates, but that would imply according to the feds own simulations in

recent papers that have been released, a 10-year rate around 6% or thereabouts. that is different from where it is right now. somewhere in that range is where you will see the volatility, is my guess. lori: another thing i thought was interesting was the statement on the equity market and how she doesn't view the current situation as an asset bubble. do you agree with that assessment? >> i would say that is probably correct at this point because when you look at the individual stocks and what is happening, these companies are poised to do well. profits have been well. the real question is if it can continue. but right now i think what we are seeing is something that is more reflective in advance of where people hope the economy is going to go. lori: i want to ask you about thisñr report from the consultig firm saying there is little

evidence the ultralow rates have boosted the market went into the fact that you would exceed increase in household wealth and consumption as opposed to the fact that we are not seeing, still seeing those levels like far below where they should be given the circumstances. >> all you really have to do is look at who the holders are of the equity in the stock market. a good read of it in pension funds, not individual portfolios and it is the wealthy people. the average portfolio investment including pension funds is $25,000. even a kind of increases we are going to see are not going to have a huge impact on consumption, i don't believe and certainly will not impact the consumption of the wealth. do you think bill gates is spending will change because of what happened in the value of the stock market? no, i don't so.

lori: maybe confidence, it is all what you think the future holds. >> i think it is uncertainty that people are dealing with right now. lori: absolutely. adam: lockheed martin shedding 4000 jobs and close for plants. they blame it drop in spending for those layoffs. federal contracts represent 80% of lockheed martin overall revenue in 2012. it brings the total number of job losses to 30,000 over the past five years. the stock is up 49% this year. lori: three workers at the factory in fremont, california, were injured by a hot metal spill. this is the latest issue. three vehicles caught fire. tesla ceo elon musk visited the

injured workers to make sure they were okay getting the best care. that kind of dedication can be reason they named him ceo of the year. adam: washington is well-known for gridlock and not being able to guess the fiscal house in order, but there is one thing washington, d.c., at least local government, is doing terrifically. details ahead. lori: incentives giving rural kansas a second look at a place to call home. adam: jpmorgan running. the q&a session that backfired against the banking veteran as an avalanche of snarky tweets. ♪ it's as simple as this.

at bny mellon, our business is investments. managing them, moving them, making them work. we oversee 20% of the world's financial assets. and that gives us scale and insight no one else has. investment management combined with investment servicing. bringing the power of investments to people's lives. invested in the world. bny mellon. and this park is the inside of your body. see the special psyllium fiber in metamucil actually gels. and that gelling helps to lower some cholesterol.

metamucil. 3 amazing benefits in 1 super fiber. 3 amazing benefits [kevin] paul and i have been [paul] well...forever. [kevin] he's the one person who loves pizza more than i do. aul] we're obsessed. [kevin] we decided to make our obsession our livelihood. [kevin] business was really good. [kevin] then our sauce supplier told me: "you got to get quickbooks." [kevin]quickbooks manages money, tracks sales and expenses. [paul] we even use it to accept credit cards. [paul] somebody buys a pie with a credit card, boom, all the accounts update. [paul] when we started hiring,we turned on payroll. [kevin] it's like our pizza.you add the toppings you want, leave off the ones you don't. [kevin] now business is in really great shape. [announcer] start using intuit quickbooks for free at quickbooks-dot-com.

adam: there is new concern over jpmorgan hiring practices when it comes to china. "the new york times" reported the bank secretly hired the daughter of china's premier to enhance its standing in the country, j p.m. gave the premier's daughter known by the

acronym $75,000 per month consulting contract. investigation as part of a wider bribery post into if the bank credit contracts and jobs in order to win business. lori: speaking of jpmorgan. an opportunity for college students to ask questions. but they decided to it for another purpose. hi, elizabeth. >> it is what th what seemed lia great idea. the city manager helped manage the twitter ipo for jpmorgan chase, he also works on the gm ipo and offering, the move to get michael dell silverlake buyout. when they put it out to the students and the twitter world that he would be speaking a big blow back. you're going to see these, out.

tomorrow at 1:00 p.m. we will have you talked to vice chairm chairman, and then all of a sudden the next tweet says wait a second, the q&a is canceled, back to the drawing board. look at these. the jokes came in such as this. i have mortgage fraud. market manipulation. and oan end my diversified? what is your favorite type of whale? do you ever feel slighted because you don't have a cool nickname? one says can i have my house back? at here is the final one. what power grabs are you planning to execute in the next financial crisis that you helped cause was mark they are feeling roasted over there at jpmorgan chase. lori: you think? thank you for bringing us those tweets. adam: nicole petallides looking

at earning movers. nicole: seeing some big names. cisco systems, the number one loser on the s&p 500 down 12% right now. walmart managing to squeeze out a game here, but we do have number one and two losers on the s&p 500. kohls saw a drop in same-store sales in revenue as well as the prophet is dropping but they are looking forward to the holiday season. macy's did well because of the discount and they have seen and a lot are expecting deep discounts cutting into margins during the holidays. lori: cheryl casone spoke with cisco ceo on "countdown to the closing bell" back in august. the day after cisco reported earnings and the stock was down 10% on that day. chambers and of the interview a bold statement. >> one last quick comment if you

have a second. watch where this stock is two weeks from now, four weeks from now and a quarter from now and see if the market overreacted or not. lori: okay. that was back on august 15. he wanted us to watch the stock and we have. a big direction but not the direction he had hoped for. it is down 14%. so how will chambers react when he joins liz claman at 3:00 p.m. eastern? you don't want to miss it. adam: a surprise guest at reelection celebration dinner for chris christie. you will never believe who charlie gasparino is going to let you in. lori: no place like home. she may not be alone. next, the sales pitch luring people to move to the least populated counties.

♪ clients are always learning more to make their money do more. (ann) to help me plan my next move, i take scottrade's free, -branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. (announcer) ranked highest in investor satisfaction with self-directed services by j.d. power and associates. it's been that way ysince e day you met.. but your erectile dysfunction - itld be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you cabe more confident in your ability to be ready.

and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immedte medical hel for an erection lasting more than 4 hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial.

>> 21 minutes past the hour, this is your fox news minute. uss george washington aircraft carrier has arrived in the philippines to assist in the

relief efforts following last week's deadly typhoon. the carrier and strike group will use 21 helicopters to reach the most inaccessible areas. so far more than 2300 people have been confirmed dead. chevrochevron confirms one of is pipelines have exploded in texas. the incident happened near milford, a town 700 people located some 50 miles south of dallas. they have asked residents to evacuate. 84-year-old gangster "whitey" bulger was sentenced today to life in prison for 11 murders and a string of other charges including extortion and money laundering. he was a fugitive for more than 16 years until he was captured in 2011. those are your news headlines, get you back now to lori and adam. adam: a question for everybody, would you trade in the city life for a more rural setting?

those of you who love a penthouse view. kansas wants you to give up the penthouse view. offering incentives to people who moved to towns played by population decline. 60 miles from the closest walmart and three hours away from the closest tv studio, banking and this program's success. the county supervisor joining us now via skype. thank you for taking time out of your day to talk about this program. if you have student loans debt, and you moved here through this program you would get $15,000 in the form of relief toward your debt, is that correct? >> yes, it is. good afternoon. the rural opportunities program is a partnership between the state of kansas and the participating counties. the state to pay $1500 per year

to the individual student loan debt, and the county pays to the individual student loan debt. a maximum of five years, so they can receive up to $15,000 over that five years. adam: 73 counties authorized in kansas for this. are you getting younger people moving in under this? >> we have had really good results. we didn't know what kind of results whe we would have. when governor brown put it in place. basically we picked a number of individuals and a dollar figure we thought we would be comfortable with and we doubled that thinking if we can get that kind of result, that would be great. adam: there are people who love a rural life, like to be out in the country where it is quiet, not the hassles of the more

densely populated areas. are you attracting somebody like a nursing student with college debt, are they moving and will they stay once they have done their five years? >> this program is a really good tool for our school system, our hospitals, different businesses when they go to recruit employees, can we keep them here, that is part of the effort we are doing is improving the quality of life we have here. adam: this kind of program got its launch because we see people leaving rural parts of not only kansas but other parts of the country. do you see other programs like this kind of competing for those younger human beings may move in going somewhere else? >> you bet. there will be competition all throughout rural america. the exciting thing for me and for our community is the 2010

census brought our population in at roughly 1250 people. since that time in 2012, they have a census estimate and there are actually four counties in the state of texas that show a 4% or better increase in population, three of those counties are all in the area adjacent. the fourth county, we have seen 4% increase in population from 2010-2012. adam: we appreciate you joining us, i think a lot of people would have considerable debt thinking about this especially if they do not like city living. >> you bet, thank you, adam. lori: making money off of stuff you know longer use. we will introduce you to the woman behind the luxury online consignment site.

adam: the city that filed for bankruptcy thanks to the underfunded pension liability looks pretty darn good compared to a lot of other major metropolitan areas. the morningstar report and where your city stacks up, how much is going to come out of your pocket if they made you pay up. next. ♪ ÷

sometimes they just drop in. always obvious. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities.

cme group: how the world advances. pop in the drum of any machine... ♪ ...to wash any size load. it dissolves in any temperature, even cold. tideod pop in. stand out.

adam: breaking news just moments ago. president obama announced a plan to allow american citizens to keep their health care insurance if it had been canceled after rollout of the affordable care act. here's what he said. >> but the bottom line is

insurers can extend current plans that would otherwise be canceled into 2014 and americans whose plans have been canceled can choose to reenroll in the same kind of plan. adam: this move comes in response to intensifying pressure from disgruntled consumers and an unhappy congress after promising people could keep their insurance plans and they did not. lori: i wonder if bill clinton had anything to do with it, another unhappy democrat, doesn't help when the clint cons come out and say, hey, keep your promise. lori: it has been 15 minutes since we last checked on the floor of the new york stock exchange and nicole pet pelt. you're looking at stocks ahead of earnings after the close today. >> i am indeed, lori and adam, and the retailers have been a very fickle bunch. some selling off, some discounting. they all seem to be ready and geared up for the holidays. that being said, look at nordstrom. a new high for nordstrom today,

folks. it is up to 53.71 for this department store chain. i clocked it back over 10 years, it looked like an all-time high for nordstrom today. we'll see if they go the way of macy's to have a great quarter or the way of kohl's, not so great. we'll watch applied materials closely. applied materials will be another name reporting after the bell. they are to the downside for this particular company. not good news there. at 4:00 p.m. stay tuned. watch the names between now and the closing bell. we'll bring you the numbers of course in the 4:00. lori: we'll look forward to that, thank you. adam: there is fresh concern about pension liabilities for cities across the country. check out numbers from a just-released new report. "morningstar" actually issued this. the median for pension funding in the united states is 76% among the largest 25 cities. just barely above what is considered fiscalally sound threshold. the median cost residents would snead to make up the difference

tops $1500. in english that is money out of your pocket. but for many cities across the country the numbers are a lot worse. joining us to take a closer look, rachel barclay, munition call credit analyst and author of this "morningstar" report. appreciate you making time to join us. what you did is put this in easy to understand terms. we have a graphic to show per capita amount of money in the top five cities where they have the highest unfunded liabilities, just for pensions. and new york city where i live, each of us, every man, women and child would have to come up with, look at it, $8472. the 2 1/2-year-old who lives next door to me is a deadbeat. better pay off. boston, 4,000. this puts it in perspective. are these insurmountable numbers? >> i think largely they may not be insurmountable and one of the key things to take into consideration is that these numbers are going to be paid off

over a wide number of years, typically 30. and an additional factor is that it doesn't take into account any possible pension reform that might be upcoming. there are a number of cities, recently that passed some measure of pension reform. chicago passed some recently and has been debating but unable to pass additional reforms in the past year. the one issue with pension reforms they typically don't deal with the currently accrued liabilities. so that unfounded liability there, residents would still need to fund, it would just contain liabilities going forward. >> rachel, stop you right there. because the numbers were talking about, and pension reform as it goes forward is dependent upon politicians and city governments funding those pensions fully going forward. which is never really happened. take the case of chicago. chicago has reformed but the

park district reform actually is a bill that still needs a signature of governor quinn in illinois. actually, when you look at chicago and their 7,000 per capita, 7,000 -- $7149 it still kicks the can down the road, does it not? >> oh, it definitely does. one of the key measures we look at also is, what, if they're paying what is called the arc, acutarial determined amount they have to pay every year in order to fully fund the liability over time and one of the key issues with chicago and many of the cities that have poorly-funded pension plans is that they have not been funding the full arc in recent years. in fact -- adam: full 30% from your report, we have another graphic, the report really is very easy to follow. cities at risk, these are cities at funding ratios under 70%. for instance, new york city, i think, for just our pensions, we're at a funded ratio of 60%.

places like phoenix, 61%. san diego i think, what, 58 or 68%. 70% is kind of danger. 80% is where you want to be though, isn't it? >> that's correct. that is what the government financial office, officers association recommends. that is what "morningstar" recommends as being strong. there are other variables that can make up somewhere between 80 to 70% all right. but we typically would like to see above 80% and we get concerned if you're below 70%. adam: there are cities, i was shocked, washington, d.c., they have overfunded their pensions. take a look. they are in no problem there. in fact they owe some of their, if you were to crier 6 require citizenry to come up withey right now at this moment they would owe the citizens of the district $409. >> that's right. and how that also plays out is if you look at the city

contributions as a percentage of spending, washington's on the lower side at just above 3% of their general fund revenues going towards pension contributions where in other cases you see them being 15 to 30%, which is quite a, pressure on the annual city budget. adam: rachel barclay, we appreciate you joining us. your report, the ssate of city pension plans, 2013. we'll post the interview online. i will send a copy of the report to our team at the web, to put a link so people can read this. this is terrific tool if you're an investor and whether you want to assess municipalities debt load, soft debt and hard debt is a danger. thank you so much. >> a thank you for having me. lori: snap chat not only turning down a big-money offer. why dodgers closer brian wilson is spurning the new york yankees. adam: after winning re-election by overwhelming margin,

new jersey governor kiss chris christie is. wait until you hair who showed up at his celebration dinner coming up next with charlie gasparino. ♪ ♪ [ male announcer ] how could switchgrass in argentina, change engineering in dubai, aluminum production in south africa, and the aerospace industry in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 70% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. there's nothing like being your own boss! and my customers are really liking your flat rate shipping. fedex one rate. really makes my life easier.

maybe a promotion is in order. good news. i got a new title. and a raise? management couldn't make that happen. [ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex. [ male announcer ] introducing fedex one rate. i see a world bursting with ideas, with ambition. i'm thinking about china, brazil, india. the world's a big place. i want to be a part of it. ishares international etfs. emerging markets and accesingle countries.arkets, find out why nine out of ten large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal.

>> i'm cheryl casone with your fox business brief. boeing tells "the wall street journal" that is it evaluating multiple u.s. sites for manufacturing 777 jetliner after the machinists rejected the contract extension offer to build the new plane in washington state by 2/3 vote. the machinists voted to against the deal by the boeing's plan to end the pension plan and raise health care costs. 30 year fixed year mortgage rose to the highest level in 6 months. eli little little will invest more than $700 million to boost the global insulin manufacturing capacity. lilly will spend after the money in the china, whichs have the world's most diabetics. 32 million people are living with diabetes. that is expected to rise to 592 million over the next 25 years. that is the latest from fox business, giving you the power to prosper.

adam: who does new jersey governor chris christie want in his circle of friends? you will never guess but here's hint. he is in the news a lot these days. exclusive story from charlie gasparino. >> not me. adam: author of, "circle of friends is better tradeing. >> it is about steve cohen and it is steve cohen. this is fascinating. steve cohen has not been charged with insider trading but the day after sac pled guilty, paid $1.2 billion, steve cohen remains under investigation, the next day chris christie won overwhelmingly new jersey governor and guess what he did? he personally called steve cohen to come to his big gala association and attend a private dinner. now there is nothing illegal about that. but this is now raising eyebrows from people, republicans who saw him at the event, from people starting to make its way around the political analyst circles where they're saying this is incredible fodder for anybody

that runs against christie in the future, particularly if he goes up, if he runs for president in 2016, this could be a campaign commercial. this is what we know, christie personally invited him. heard through the grapevine steve cohen following the monday plea deal was depressed, wasn't feeling very well. told him to get, quote, his rear end off the couch from what i understand. that is direct quote from somebody and attend the event. cohen did attend the event. one of 2500, 2400 people at the main event. but from what we understand at the fox business network, we have confirmed that he was also at a private dinner with a handful of christie supporters, fund-raisers, even a few wall street types that attend ad more private gathering, steve cohen was at that as well. it is an interesting story from this standpoint. if you're chris christie, even though steve cohen hasn't been personally charged criminally, he is charged civilly with failure to supervise is this the

right guy you want to be seen in public with or advocating support. they are friend. lori: i was going to ask you that. >> i don't know how close they are as friend. but i do know this the fox business network reported two years ago, i remember this story, both of them were seen having dinner at quality meats discussing politics over a 350-dollar bottle of wine and -- lori: naturally. >> some nice stakes over at quality meat as couple years ago. from what i understand that is political discussion. christie at the time was raising money for mitt romney, unsuccessful presidential bid. late they're year cohen has been a supporter of romney. so, you know, there is a lot of practical reasons if you're christie you want to be friends with someone, despite all this worth $9 billion. adam: bingo. >> but, but, is this right message you want to send? adam: talk about that. assume governor christie runs for president. two years out from now when that gets geared up, is anyone going

to talk about insider trading? the people you're trying to influence with the ads come up going to understand all this or brush it aside? >> listen, preet bharara, basically, not basically, called, called sac capital a vary ridable magnet or center of insider trading. he came out and used very strong word about steve cohen's hedge fund the day before steve cohen showed up at chris christie's event. and you know, steve cohen faces, you know, basically says he is innocent but still face as criminal probe. he is under criminal investigation still. and, he has been charged civilly. go ahead. lori: thank you. what about from cohen's perspective? maybe this is, maybe this is way to transition as advisor to christie? is that a terrible idea? >> i no longer running money being a political advisor. lori: he doesn't need to earn

anymore. >> listen -- lori: many people have straddled -- >> all the rich guys want to give advice. ken langone, financeer and cofounder of home depot has been raising money for christie. ken is no, is not a wimp. he will say what he thinks in terms of his mind, in terms of what he thinks the christie's economics policy should be if he runs for president. i'm sure cohen would be same way. what is interesting about this, the way the story, i have a full write-up on foxbusiness.com is how this came. christie hear that is cohen is depressed. calls him up and tells him to get his rear end off the couch. doesn't just invite him to a big event with 2400 people. which is interesting if you're personally invited. he got into the more private gathering dinner from what i understand. lori: maybe publicly trying to rehabilitate his reputation. >> listen we quote an analyst, this is perfect negative ad. perfect. the reason why is because, you know, the sort of hatred of wall street or sort of mistrust

of the wall street, transcends both parties. it could be used by his republican -- adam: george sorry rose with a democratic candidate -- george sorry rose. >> why did dough it? this is blind spot on christie. does he think he is so powerful you won by enormous margin to get away with anything he wants. adam: okay. >> if he runs for president, everybody says he will dot scrutiny will grow, does that brashness, translate nationally? this is symptom of that brashness, charlie gasparino, you get the last word. thank you very much. >> thanks, charlie. let's update you on the markets. we have another rally, because we're looking at dow 16,000, like 36 straight record closes for the stock market. mark newton of gray wolf execution partners is on the floor of the new york stock exchange. obviously the headlines today, janet yellen's testimony before congress. characterizing the fed's actions, this extraordinarily loose monetary policy has not

created asset bubbles. how are you taking it? how is the market taking it? >> a lot of people are skeptical we're not a bubble at this point. prices continue to rise. dow and s&p continuing on gains. we've been in consolidation mode since mid-october. we just broke out yesterday. we're seeing some continue ages. what is interest a lot of interest rate-sensitive stocks are showing movement now we got backup of interest rates pulling back a bit. people believe yellen could be the super dove they think she is. utility, reits, builders are showing signs of strength. mostly they have been weak since may. so that is interesting. yellen's testimony was basically as planned. nobody thought she would deviate really from the party line given she is not officially confirmed yet. we'll have to wait and see. for now stocks continue to show strength. we've been overbought very quickly in short period of time. lori: unbelievable. everybody is so ambivalent about it. mark newton, thank you for your time. >> thank you. adam: besides snap chat there is

another thing money can't buy, proper grooming. san francisco giants closers brian wilson turned down an offer from the new york yankees due to their strict facial hair policy. for decade now the yankees had a policy that does not allow for hair below the lip and facial hair must be contained to mustaches only, a policy wilson clearly violates. lori: it's a distraction. i get the dress code thing. adam: kind of looks like a beehive. see, riply's believe it or not. lori: kind of looks like moses. or zz top. >> cue cecil b. demille's music and we're off. lori: how can you make some money off those things lying around in in your house? adam: founder of online high-end consignment store, the real reel shows us next. ♪ ows how to handle a saturday crowd.

♪ [ male announcer ] the parking lot helps by letting us know who's coming. the carts keep everyone on the right track. the power tools iroduce themselves. all the bits and bulbs keep themselves stocked. and the doors even handle the checkout so we can work othat thing that's stuck in the thing. [ female announcer ] today, cisco is connecting the internet of everything. so everyone goes home happy. try align. it's the number one ge recommended probiotic that helps maintain digestive balance. ♪ stay in the groove with align.

lori: you are about a meet a woman, julie wainwright, built a company by raiding people's luxuries in closets and earning 610 million in revenue, luxury junk but used in and of itself. julie is the founder and ceo of the real real. we are pleased to welcome her from san francisco. hi, julie. >> lori, thank you for having me on. lori: you were the ceo of real.com back in 199. and pets.com back in 1999. you have a lot of experience on the online stuff so how did you get the idea of realreal.com? >> i saw a friend of mine going

into a beautiful boutique had a little bit of consignment in the back. this is a person who would not normally walk into a consignment store. that is where she spent her money. i'm like, what just happened? look, i got a great deal on the chanel and louis vuitton and this is lap season this, is heaven. i thought that's that is it. if i can figure out an economic way to go into people's closets and resell the luxury brand online, it will be a home run because it is, and especially if i can create a really beautiful environment. but it really light bulb went off when i saw behavior from someone i knew would never go around to get best deal at a consignment store and she knew a great deal when she saw it. lori: you're also doing the legwork. how does that work? i would sign up on realreal. com. tell you stuff i have i think would be valuable and interest to you. you actually send a truck or how does that work? do you come and pick up my stuff

and do again the legwork to get it sold online? >> we do everything for you. so you can just send an email to consign it@realreal. we have what i call uber-of consignment. put in your zip code. we have representatives. they all work for the company. they're merchandise managers. if we have someone in your area, she will talk through the items, what has value, what we sell and pick them up, remove them and we pay you, really simple. lori: how does that work? how does the breakdown work? if i sell you say, i want you to sell a 1,000-dollar pocketbook, how much of a commission do you charge? what take do i receive? >> so let's assume it's a chanel handbag because they retain their value. and actually her may -- hermes can increase value. chanel, sell it for a 1,000. you get 600 and we get 400.

if you sell with us and over $5,000 sales which almost all the consigners are you get $700. majority goes to the consignor. lori: sorry, julie, do you have enough trouble getting luxury goods? sounds almost too good to be true? you. >> know, actually we don't. in just the new york metro alone there is over $12 billion sold into the market in the categories we participate in every single year. so, the u.s. has over $2 trillion of people's things and the last 10 years. so there are a lot of products out there. lori: great. sound cool. >> we're creating liquidity. lori: thanks. you sure are. julie wainwright, appreciate it. adam: she could soon be the most powerful woman in the world. janet yellen grilled by senators. "markets now" all over it with the reaction from washington, d.c. wall street and main street. gutsy or stupid? snap chat rejects facebook's

3 billion-dollar buyout. coming up is tracy byrnes and ashley webster. five tech stocks with more than a 10%... change in after-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays... that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade.

♪ nothing, that's what? that's why i take prilosec otc each morning for my frequent heartburn. 'cause it gives me a big fat zero heartburn. woo hoo! [ male announcer ] prilosec otc. the number one doctor recommended frequent heartburn medicine for 8 straight years. [ larry ] you can't beat zero heartburn. and best of all, it means i can enjoy all the foods i love. oh, zero heartburn is awesome. just like zero clery.

♪ [ male announcer ] prilosec otc. one pill each morning. 24 hours. zero heartburn.

tracy: good afternoon, i'm tracy byrnes. ashley: i'm ashley webster of the she could soon be the most powerful woman in the world. janet yellen grilled by senators. >> talking about me? ashley: not you. second. and we're all over it of course with reaction from d.c. and wall street and main street. tracy: president obama makes an about-face on health care, allowing americans to keep their old insurance plans if they want to. we are live inside the beltway with reaction on that. ashley: gutsy or plain stupid? snap chat's 23-year-old founder rejecting facebook's 3 billion-dollar buyout offer. we'll examine that story. give us a tweet. we'll have your responses coming up. tracy: i think i will go with stupid. plus in tech minute, this is a very cool table, if you could

see this, cirrus 113 listeners can't, a 3-d table that instantly recreates three dimensional objects. we have all that. >> i don't know how that works. all right, so let's get to the big story or one of the busy knew days today. she could soon arguably be the world's most powerful woman but janet yellen is first on the congressional hot seat as they weigh her nomination to replace ben bernanke as fed chief. and yes, she maintained her cool. >> while there is no set time that we will decide to reduce the pace of our purchases at each meeting we're attempting to assess whether or not the outlook is, is meeting the criterion that we set out to begin with is reduce the pace of purchases. ashley: we're all over the yellen confirmation hearing story. republican senator david vitter who on capitol hill actually

asked questions of janet yellen. drew mattis, ubs chief economist is here in studio. we begin with nicole petallides on floor of the new york stock exchange. see how the markets reacted to janet yellen's testimony, nicole? >> there is a lot goings-on on wall street, janet yellen's testimony was not too disruptive. pretty much stayed in line with easy money for wall street and the like. with the printing of money the markets continue to stay with their up arrows. also worth noting that all three of our major averages hit some sort of a record. the dow jones industrial average average and s&p 500, all-time record highs. nasdaq clocked in a high of its own dating back 13 years. great day again for the bulls. this is the 36th time, 3th time for the dow jones does trees. that being said we also heard from president obama pertaining to obama care, right? the affordable care act act which they're working to fix. meantime the markets have been pretty steady for this afternoon since president obama spoke in a

very narrow range, maybe 20 points. we are watching cisco systems, weighing on the dow jones industrials. that is something i've been watching as well. if tracy were the most powerful woman on the world or where you said, that would be great and i would be a friend of the most powerful woman in the world. i will take it. go for it, trace. tracy: we would all wake up from the fabulous dream. i'm not even the most powerful woman in my own house. all the little people take over. it's terrible. thanks, nicole. now to senator vitter, a member of the banking committee. so, sir, you questioned ms. yellen whether she would support stricter regulations for bigger megabanks. you were previously undecided whether or not to support her. did any of that get cleared up today? >> well, i was a lean no and i'm going to vote no. unfortunately none of her answers were very reassuring me, my biggest concern which is continue ages of too big to fail. i think unfortunately too big to fail is a live and well. there are multiple reports that

confirm that, try to measure the advantage in the market megabanks have. there was a new gao report that came out today in response to my request as well as sherrod brown's that confirmed it in different way. that is my single biggest concern. ashley: it is interesting, senator. because you're basing this purely on your issues with the financial institutions. you believe as you just said, that the standards being imposed don't go far enough but will any fed chief actually do what you would like to see them do? >> well, i don't know. i do have other concerns, ashley, including the free money policy quantitative easing. and like a lot of conservatives i didn't like what i heard today which is basically, no end in sight. it's a great run for wall street. i think it's a raw deal with a lot of dangers for main street. tracy: she did though demonstrate a willingness to tighten if the tightening was appropriate. again we come back to all these economic measures and who the heck knows what we're using these days to make these

decisions but i think, just to take ashley's point a step further, this fed chair is in a really tough spot no matter who it is? this stuff will have to go on for a little bit longer, regardless, right? >> well, i think we need to start winding down now. i think we're at a point of diminishing returns and dramatically growing risks in terms of free money and a lot of conservatives share my concern. it's a tough job no matter who has it and i will grant you that but i'm very concerned about just the free money policy with essentially no clear end in sight. ashley: well, what, what's it going to take then, senator, to give the economy the boost it needs? clearly it is taking a long time for the unemployment rate to come down and for small businesses to feel confident enough to actually go ahead and hire? how much of that responsibility should you and congress also take on board? >> oh i think it is all about elected folks in washington. i think what is keeping our

economy down is not the fundamentals of the economy. it's attacks and threats and uncertainty regarding job creation out of washington. regulatory issues like obamacare, tax issues and the like, and i think it is all on elected washington. i certainly agree with that? tracy: senator, you mentioned obamacare. i asked you to comment on the president's flip-flop today. can you keep your plan, can you not keep your plan? it kind of makes your head spin. >> yeah. unfortunately i think it is a whole lot more politics than substance. first of all it is not clear he has the authority to do this under the law. secondly he is largely punting to insurance companies and state commissioners. and i think that's to point at somebody else down the line when these core problems with obamacare continue. and third, at berks there seems to be a reprieve for a year, not any permanent fix. tracy: yeah. still all unanswered. senator david vitter, thank you so much for taking time to be

with us,. >> thanks very much. >> all right, bring in drew mattis here in studio. drew, thanks for joining us. you think that janet yellen may be more hawkish once inflation starts to rise. however, we've been staying for a long sometime. are we seeing any signs of that happening? >> we're not. there are signs that inflation could begin to turn i guess in the next couple months. ashley: yeah. >> one is in health care costs where health care costs should begin to move up in the near term in part because of changes in insurance premiums and out-of-pocket expense that is americans will be facing. we will get i think a little bit of inflation as we move forward and i don't think we'll see the kind of ben bernanke environment where inflation goes up a little bit and unemployment goes down a little bit and he begins to shift and you will see that shift. i don't think she likes to make gradual shifts. if inflation is a problem i will act one way and if inflation is another way i will act another way. it is very much a bifurcated

response. if inflation begins to move higher, people will think that they were talking about her like a dove and remembering it with a little bit of pain. tracy: you know, drew, i know seems there is dissent in d.c. about her nomination but seems to me that the market is kind of pretty happy with her. we didn't have a blow out rally. but it moved up a little bit on some of her responses. market is happy about this. >> i'm not the biggest janet yellen fan in the history of the world. i will say this, if you appointed her to the board, which is a senate appointment as well, then not appointing her, why are you appointing anyone to the board who can't be chairman? ashley: right. >> so i think, you know, in terms of quantitative easing, she didn't come up with quantitative easing. quantitative easing is what is left with her. in terms of too big to fail, that is not her responsibility either. that is the senate's responsibility. i'm not sure what the issue is with her. i think we should be tapering. i think zero interest rate policy is counterproductive to the economy. sooner we get out of it, faster

economy will grow in the next 12 or 18 months. maybe there is a period of pain in there. we will have to live with it. vaccinations hurt but they're better for you in the long run. i think whole idea somehow like, you know the president shouldn't get his choice in this one, seems a little silly. ashley: one of the questions she answered how will the fed do a better job communicating to the public? what did you think of her performance today, talking of communication? first time we really had to listen to her being a little bit in the hot seat, answering tough questions. how do you think she did? >> i think what she saw is someone not used to being in the hot seat. you can just see, there is little hemming, little hawing, a little backing up. nevertheless we have to bear in mind she is not used to that aspect of it but in terms of communication, what they're really talking about communicating with wall street. we speak the same language. ashley: right. >> the fed has been really bad at that before. she was the chair of the communications policy of the fed. so their scenario of responsibility where someone

could have questioned her communication with the market gone well? i heard one question on that today and probably should have been more. i personally prefer if the fed stop trying to communicate so much with us. a bit like listening to aliens coming down. talking something different and nothing good will come from it, right? we've all seen the movie. that helicopter doesn't end well. better if you don't try to communicate all the time. tracy: we have to wrap when do you think tapering will start? >> ubs thinks announcement will be in january and actually start in march. ashley: all right, drew matus thanks for being here. appreciate it. >> so simon says you may take one step back or at least the president said that today. president obama calls on insurance companies to bring back canceled health plans. this up-to-the-minute coverage from inside the beltway next. ashley: has the time finally come to raise the social security retirement age? we'll have that debate, straight ahead. >> and was it gutsy or just

stupid? snap jet rehe can projects facebook's -- rejects facebook's $3 billion buyout. we want to hear from you. tweet us your response to that one. ashley: take the money and run. as we do every day at this time, take a look how oil is trading. crude trading at five-month low after the eia report that is oil supplies increased by 2.64 million barrels last week. that is well above the estimates of one billion barrel build. as you can see just bun changed at end of the day. for metals, gold started going up when janet yellen and her dovish performance you could say, put more mon into gold today and as is the case with the other metals. we'll be right back. my mantra? family first. but with less energy, moodiness, and a low sex drive,

i saw my doctor. a blood test showed it was low testosterone, not age. we talked about axiron. the only underarm low t treatment that can restore t levels to rmal in about 2 weeks in most men. axiron is not for use in women or anyone younger than8 or men with prostate or breast caer. and children should avoido are contact where axiron is applied as unexpected signs of puber in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medication serious side effects could include increased risk decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts; problems breathing while eeping; and blood clots in the legs. common side effects include skin redss or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting and increase in psa. ask your doctor about axiron.

just by talking to a helmet. it grabbed the patient's record before we even picked himp. it found out the doctor we needed was at st. anne's. wiggle your toes. [ driver ] and it got his okay on treatment from miles away. it even pulled strings with the stoplights. my ambulance talks with smoke alarms and pilots and adiums. but, of course, 's a good listener too. [ female announcer ] today cisco is connecting the internet of everything. so everything works like never before.

tracy: it's quarter past. got to get a check on these markets. nicole petallides on floor of the new york stock exchange. watching twitter, wait, your twitter account or the stock? >> i don't have a twitter account. i need to get with the times. that is on my to-do list. let's take a look. the stock is up 4%. i'm watching stock very closely since the ipo of $26. it got so high it was above the $50 line, $50.09.

next few days down to $39. today right now a great move at 44.2. the other thing, yesterday was first time short sellers were able to get in on it. it has been a hot short. the question is whether or not there is siege being prepared or whether or not the bearish folks are just testing the waters. so that is something to consider as well. more than 50% of the analysts who cover twitter do have a buy ratings on twitter. back to you. ashley: nicole, thank you very much. of course we will be back with you at the bottom of the hour. okay, president obama making an about-face saying those canceled health insurance plans, well, they now can be kept for another year. rich edson joining from us inside the beltway with reaction from republicans who you can bet are making hay of all this rich? >> they say president obama does not have the legal authority to change the law like this. they're pushing bill and saying the whole law is a mess and congress should just scrap it. as for changes the administration will allow insurance companies to reissue

canceled plans through next year only. however state insurance commissioners could refuse to allow insurers in their state to sell plans and health care companies could refuse to issue them. in a statement ahip, health insurance industry group, says changing the rules after health plans met the requirements of the law could destablize the market and result in higher premiums for consumers. premiums have already been set for next year based on assumption when consumers will be transitioning to the new marketplace. insurers need paying customers for this to work and they're not getting many from the federal exchange. only 27,000 in the first month. the president says that will change when the administration fixes the website. as for the promise it will be ready by november 30th, some couching from the president. >> i think it is not possible for me to guaranty that 100% of the people 100% of the time going on this website will have a perfectly, seamless, smooth

experience. we're going to have to continue to improve it, even after november 30th, december 1st. >> the president also acknowledges the problems with the obamacare rollout is politically costing democrats, despite the administration's announced fix, democrats are moving forward with their own solution. senator mary landrieu up for re-election will continue to work on legislation to fix this. another democrat, senator kay hagan, one year fix is not enough and congress needs to do more. back to you. ashley: rich, quickly i'm trying to understand this process. so if is really onus going back on insurance companies do they have the ability to say, no, to the one-year extension, or are they being forced to accept at least another year? >> absolutely. for you to get canceled plan you have to go through two layers. first the state insurance commissioner which you live has to sign off on to allow standards to be lowered.

your insurance company says, okay, we will reissue the plan. this is just the administration we're taking our hands off this one for next year but doesn't mean states will sign off and doesn't mean insurance companies will either. tracy: huh. that is a big piece of the pus celeste out. ashley and i were talking about the president, three times, yes we fumbled the ball. everyone is waiting for apology on this. it almost seems like it is too late. >> well the president gave an interview last week and, you know, the thing was, about his apology last week, some people found it insufficient. when you listen to his explanation why he said for years you would be able to keep your health insurance plan, he said he misunderstood the grandfather clause. you look at information leading up to this the administration through regulations had acknowledged that people would lose the plans. he did acknowledge, people would, 98% of people who this didn't affect that would be fine. the small fraction who would affect, find better plans for exchange work out for them,

which is much different than you can keep your plan if you like it. ashley: didn't help when bill clinton jumped in and said people could leave their plans. tracy: got to live bill clinton. okay, the unions take on walmart like they do every year. they're really angry that people have to work on the holidays. "emac's bottom line" is next on that. ashley: don't we all? an 85-year-old gangster sentenced to two life terms. details ahead on the "whitey" bulger trial in your fox news minute. welco back. how is everything?

there's nothing like being your own boss! and my customers are really liking your flat rate shipping. fedex one rate. really makes my life easier. maybe a promotion is in order. good news. i got a new title. and a raise? management couldn't make that happen. [ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex. and this park is the inside of your body. see the ecial psylliumiber in metamucil actually gels

to trap some carb to help maintain healthy blood sugar levels. metucil. 3 amazing benefits in 1 super fiber.

>> 23 minutes past the hour, arthel negatively with your fox news minute. the aircraft carrier george washington has arrived to assist in the relief effort following the deadly typhoon. the carrier and its strike group will us 21 helicopters to help reach the most inaccessible areas. the u.n. quote as government agency saying nearly 4500 people are confirmed dead. at least six homes near st. petersburg, florida, have been evacuated due to a growing

sinkhole. the sinkhole which is about 12 feet wide already swallowed one home and causing another to start collapsing. one homeowner says the family heard a noise that sounded like a sledgehammer, pounding on the walls. 84-year-old gangster "whitey" bulger was sentenced to life in prison for 11 murders plus a stripping of other charges, includings extortion and money laundering. bulger was a fugitive more than 16 years until he was captured in 2011. knows are the news headlines from the fox business network. get you back to tracy. tracy: arthel, thank you very much. >> you're welcome. >> several major retailers including walmart and target are pushing black friday back ion further opening doors on several days. union workers are not taking this sitting down. liz macdonald. >> social media is lighting up right now. we've been tracking a developing story that we could see union protests about workers working

on thanksgiving and at walmart and at target. several cities and several states across the country seeing it popping up. california, washington, illinois. they want a 25,000-dollar minimum annual salary for walmart workers. flip side of that is, see here you see protests happening. more than 50 activists and workers, some workers were arrested in los angeles last week basically at a walmart protest. what we're seeing is, who are they comparing the protesters, who are they comparing walmart worker to? should they be comparing it to a grocery store worker in terms of salary? because walmart is turning itself into a grocery store, right? so, walmart average pay is higher than what grocery store workers make, higher than what fast-food workers make. it is lower than a costco but then you have to say to yourself, hey, costco is basically affluent shoppers. walmart has low-income shoppers. so if you do raise the pay for walmart, i get it, i get what

the beef is. if you do raise pay, walmart will raise prices, hurting low income shoppers or could lay off people. >> but what's the gripe? ashley: that is what i'm trying to understand. tracy: maybe they want toe work or maybe extra hours? they said they will get extra pay. big ol' discounts that day. >> we were talking at the break. walmart is saying they will give extra pay. they will not just give a turkey dinner but give digs counts from december 5th through december 6th. walmart has been here before. give pay with benefits. grocery stores tend not to give pay with benefits. what we're seeing afl-cio, united food workers union coming in to back these groups to do these protests. again a lot of people arrested have been activists. they are not workers. >> not workers. >> that is what is going on. we'll track this story by black friday. ashley: we'll follow it. liz macdonald, thanks very much. if you're just joining us republican senator david vitter

of louisiana made news right here moments ago after questioning janet yellen during senate banking committee hearings as fed chairman, vitter told us he will not confirm her. >> i was a lean no and i'm going to vote no. unfortunately none of her answers were very reassuring to me including about my biggest concern which is continue ages of too big to fail. >> senator vitter went on to say other conservatives on the committee didn't like what they heard today from janet yellen. >> still think she is going all the way? ashley: we'll see. >> we'll talk about raising the social security retirement age? don't you think time finally arrived? we'll debate the pros and cons ahead. you can decide. ashley: unless we live in greece. coming up in tech minute, look, mom, 3-d hands. this table can instantly recreate three dimensional objects. it is mind boggling.

>> gutsy or stupid, snap chat's rejection of the facebook's $3 billion offer? dow is up 53 points.

ashley: and welcome welcome bac, everybody. 90 minutes until the close, take a look dow 30, near session highs, up 54 points right now. the markets hanging in there as janet yellen was talking to the senate banking committee today, continuing her doveish outlook for the markets, and the markets loving that as well. on the downside, cisco and intel. on the topside, we have home depot and boeing despite the union rejecting that eight-year contract offer. nicole petallides now at the new york stock exchange looking at some retail names. >> reporter: indeed.

taking a look at dillards up 1.7% at 91.13. dds. but you can see what a great move for dillards which is a winner year to date. one of the department stores that's more modestly priced, they compete against macy's and jcpenney. but what's interesting is that the ceo said they saw same-store sales improving, but the margins were a little squeezed. the other thing, this is good news, 13 straight quarters of same-store sales gains for dillards? hey, a quick look here at kohl's. they saw a drop in profit and revenue, so that was not as good, and it's a big loser in the s&p 500, but it's certainly worth watching these two names and, hey, just so you know, don't go to dillards on turkey day, on thanksgiving day, they will not be open like many of the other retailers. back to you. tracy: good to know. i, for one, will be eating a big plate of la lasagna. no shopping for me.

warnings that social security trust funds will run dry in 20 years if nothing is done. one way to close the funding gap, raise the age of eligibility for full benefits. it's currently 66. joining us now, the president and ceo of global policy solutions, and brookings institution economist. thank you both for being here with us. maya, i'm going to start with you. i feel like we're living longer, we're strong, we're healthy. there's a lot of people out there doing stuff at the ripe age of 70, why not raise it? >> the truth of the matter is that only some of us are living longer. the upper half of the income distribution is actually enjoying the longevity gains that we've seen as a result of medical technology and healthier living while the bottom half of the income distribution, those who have less education, those who are poorer in terms of socioeconomic status have seen their life expectancy actually stagnate and in some cases even drop. incredibly, new data shows that white women over the last two

decades, the life expectancy of white women without a hooking education has -- high school education has dropped by five years. tracy: well, if our issue is declining life expectancy, we've got bigger problems than social security. gary, i'm going to turn this to you. i mean, everyone basically knows at some point the money is going to start to reverse itself in the social security fund. the fund cannot borrow money. all we've got is the trust fund and payroll taxes, and that's just not enough, is it? >> yep. in 20 years we will have to cut benefits about a quarter because the trust fund that has a reserve will be dry, and the system will have to depend on the new payroll taxes that are coming in every year. those payroll taxes are big enough to cover about 77% of the benefits that are calculated under the current benefit formula. so we have to do something. we don't want people to see their benefits cut all of a sudden by a quarter.

we'd like to spread the pain around or prepare ourselves by building up a bigger reserve so that it lasts longer, one or the other. tracy: right. i mean, maya, 2012 saw a $55 billion shortfall, and i'm not saying cut current seniors. i mean, this is my mom and, man, she'd kill me if we cut her benefits, but i'm talking about me. why don't we start cutting the younger generations? make that age eligible higher. maybe we could figure out the declining thing, too, in the process? >> tracy, the fact of the matter is the retirement age is already raising. it's increasing for those who are born after 1960 to the age of 67. tracy: i know, but that's nothing. >> no, actually, it represents a benefit cut to us, all of those born after 1960, of approximately 14%. our benefit levels will be lower. and so, you know, it's already rising. we're facing a retirement crisis in this nation, public pensions and private pensions have gone

by the way of the dinosaur, and 401(k)s are simply not enough. it is no good to drop benefits by introducing these benefit cuts when we need to be looking at making retirement -- tracy: okay, this is part of the entitlement gone wild problem, gary. so this needs to be fixed. i mean, we could, we could be as generous as we want. we can't afford it at the end of the day. >> well, we can afford to do something. we could raise contributions, and i think that should be part of the fix-it plan. tracy: that's payroll taxes you're talking about. >> that's right. but at the same time, it would be good to give people a signal that with longer life spans, they have to devote a little bit more of their life to working and saving for that retirement period. i mean, the retirement -- since 1983, the last time we reformed social security, life spans on average at age 65 have increased by four years.

the retirement age has only gone up two years even by the end of 2030. it'll be 67. so everyone expects life spans to continue to improve -- tracy: right. >> we have seen improvements in the health -- tracy: all right. so, gary -- >> people in their 60s and 70s, so, yes -- tracy: what should it be? i only have ten seconds left, what should the eligibility age jump to? >> well, we should just keep marching it up along with life spans after age 60, maybe increase it by two-thirds of a year for every one year in life expectancy after age 60. tracy: i've got to believe my generation can make it to the age of 70. that's just me though. thank you both, it was a great discussion. >> thank you. ♪ ♪ ashley: your tech minute, feel the heat or in this case the cash. google and kkr teaming up to invest $400 million in solar

power plants in california and arizona. the plants will be built by recurrent energy and are designed to produce 106 megawatts of electricity or enough juice to power 17,000 american homes. this is the second time google and kkr have worked together. back in 2011 they invested in a deal that was valued at $350 million. www.available. yahoo! teaming up with the world's largest domain marketplace to auction off more than 100 domain names. so what's open for sale, you ask in how about sandwich.com or cursed.com and an oldie but goody, finalcountdown.com. the auction began today at noon eastern and will run one week. shares of yahoo!, by the way, up 96% in the last year, and today they hit a 52-week high, up nearly 2% today. and check this out, the folks from the mit tangible media group have created a table that

can instantly recreate 3-d objects, it's called the inform, and it renders 3-d content physically so users can interact with digital information in a tangible way. it's mind blowing, right? in layman's a terms, the table has a large network of pins, cabling and actuators underneath, all of that hooked up the a computer. the computer takes the information from a connect camera or custom design and simply reproduces the same shape instantaneously on top of the table. i have no clue how that works. the team from mit says the racket call uses could be 3-d mapping, advanced kt scans for medicine -- ct scans for medicine or video conferencing. interesting, huh? recreate all your colleagues on the table. tracy: i guess. i love how you said in layman's terms. [laughter] i have no idea what you said. ashley: that layman is right up here apparently. tracy: i need the bonehead

curve. very cool. all right. and i know you love the topic, ash. ashley: oh, god. tracy: airline food. believe it or not, we all hate it. one airline that's cooking up a way to fix it. ashley: don't believe a word of that. and your last chance to get in on our twitter question, snap chat rejecting facebook's buyout offer. your tweets and our guest coming up. ♪ ♪

sometimes they just drop in. always obvious. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

♪ ♪ >> i'm jo lin kent with your fox business brief. new jersey governor chris christie personally invited steve cohen to his postparty. charlie gasparino reports cohen attended the private event just after sac's $1.8 billion insider trading plea deal. he's not been charged but remains under investigation. shares of houghton mifflin harcourt climbed on its nasdaq trading debut, it's trading under the hmhc ticker symbol, and chevron confirms one of its gas pipelines was punctured triggering an explosion. the incident happened near a town of about 700 people about 15 miles south of dallas. no injuries have been reported x. that's the latest from the fox business network, giving you the power to prosper.

ashley: all right, so here's the question, gutsy or just idiotic? snap chat says no thanks to facebook's $3 billion buyout offer. tweet us at fox business hash tag fbn, your responses will be running on the bottom of the screen. joining us now with his take, mark, the ceo of digital ad agency stink digital. okay, mark, the average person who would probably look at this can say, hey, buddy, take the money and run. what's your reaction? >> i think i'd be inclined to agree with the average person, actually. i think it's nuts of them not to take an offer like this, but by the same token, i mean, they're clearly riding the market right now, and they're playing the long game. there's a history of social media networks that have, obviously, declined very lucrative offers only to be worth more in the public market later on. so that's the risk that they're

taking. ashley: so snap chat is very popular among people age 13-25. i just miss that, by the way. [laughter] could you explain for the many viewers who don't even know what snap chat is, what does it do, and why is it popular? >> well, snap chat is kind of an ephemeral response to the long trail of archival information that you get on other social network platforms or on the internet. so the idea is that it's a video and photography application on your mobile phone. you can take photos, send them to other people, and once that other person receives the photo, they can only look at it for ten seconds before it's ostensibly deleted from their phone. so there's a sort of temporal aspect that's appealing to people. ashley: so why would that be appealing to an advertiser? >> well, i think that would be a different proposition. i think right now there's no real mechanic within snap chat

for advertisers to get involved with the application, and i think it's very -- there are probably novel ways that you can tell stories and tell narratives in that format, but there are problems with the mechanic of snap chat that make it difficult for advertisers to enter wholesale into snap chat as, you know, a platform in the same way that they do with instagram, twitter or facebook. ashley: you know, look, you're being offered $3 billion by faithbook, you've got a 23-year-old ceo, and you're not even making think money, you know? and then you wake up, this is unbelievable. why would facebook want to buy this? is it more a case of just because they can gobble it up and use what it offers, or is it to keep competitors from picking it up? >> well, snap chat has two very desirable things that facebook is, you know, very actively building towards. one is a huge mobile presence. facebook's taking huge strides

in the last year to up their game in mobile to move away from the desktop and to kind of make it a multi-device experience. the other thing snap chat has that facebook is rapidly losing is that teen demographic. ashley: aha. >> and in ways you could argue that, you know, snap chat is a product of facebook's success. facebook's now over a billion users -- ashley: yep. >> that includes a lot of uncles and aunties and parents and grandmas, and there's, you know, been an exodus of teens away from facebook to something that's a little bit more private. ashley: gotcha. >> that, to me, are the two big reasons i think facebook would be interested. ashley: remains to be seen, of course, whether it this is a god decision or bad decision, but, mark, thank you so much for coming on and talking to us about it. appreciate it. >> my pleasure. ashley: snap chat. do your kids use it? tracy: they do, they do. but he's not wrong, once the old folks show up, they go away.

that would be me. [laughter] all right, it's quarter til, time for stocks now as we do every 15 minutes, we head to the floor of the new york stock exchange. teddy weisberg joins us. teddy, what'd you think of janet yellen's performance today? >> well, i think it was as expected, you know? i think the market -- and one surprise that the market is reacting, and i think it is reacting to her eminent being knighted as our next fed chairman. [laughter] but, i mean, it's -- and why the market likes it, it will be a continuation of the fed candy that the market's been feeding on for the last three or four years. and as long as we are in this quantitative easing mode and the tapering is simply just rhetoric and who knows where it lies on the horizon, we have this underlying bid for stocks. i mean, are we creating a bubble? is the fed creating a bit of a bubble in the equities markets? i suspect they are, but, you know what? the trend is your friend.

tracy: and you've always said you never fight that. glert. tracy: teddy weisberg, thank you so much. >> my pleasure. ashley: of course, janet yellen said there's no bubble. tracy: she also didn't notice that yields were moving either. ashley: that's true. most guys hate going to the mall, especially during christmas time. amen. straight ahead, gerri willis has some apps that may help you avoid that dreaded trip and maybe let you shop in your underwear, if you so wish. tracy: okay. [laughter] and try, try again. we're going to tell you about yet another airline with yet another plan to improve airline food. why can't they get this right? because it's shrink ashley: end of story. [laughter] tracy: we'll tell you when we get back. dow's up 50 points. don't go anywhere.

ashley: all right. 'tis the season to be shopping, and for many that can mean ditching the brick and mortars for online convenience, but when you do that, how can you keep your money safe? joining us now with more from her user's guide to shopping, gerri willis. what are the best apps out there? >> well, there are a lot of great, and one of the old toest and best known is called red laser, and it scans bar codes. here's the bar code on the thing you want to buy, right? you scan it, find out where you might get that item cheaper. ashley: that's cool. >> old school. red laser is now old school, that's how far -- ashley: that's how far behind we are. [laughter] >> another one checks out prices at 60,000 different retail locations, so big chains; kmart, costco, all these places -- tracy: again, bar code. >> well, no, the way to do it is

actually to put in an entire grocery list, a list of things you want to buy, and then it tells you where you're going to find them cheapest. you don't even have to go to the store until you buy it. tracy: okay. >> then key ring, which i think this is interesting. i've never done this -- full disclosure -- you know those plastic loyalty cards? you don't have to do that anymore. put it on your phone, and when you go to the pharmacy or wherever you're going and you can just show them your phone and boom you're done. you don't have to have that plastic thing. they're a total pain in the neck, and you lose them, and somebody picks them up. interesting because we've been looking at this all week, people, you know, there was all this worry about showrooming and people always buying in the finish you know -- ashley: looking in the store, then buying it at home. >> now the opposite happening. that's what the brick and mortars are trying to encourage. you shop online, find the exact product you want, then you go in

the store and, bam, they're doing price matching. it's places like best buy. i can barely get it out, i'm so excited. ashley: you'll be looking at this tonight. do not miss tonight's installment on "the willis report," 6 p.m. eastern time right here on fox business. save yourself some money. tracy: good stuff. all right, we love this story. british airways, god bless their souls, taking a stand against flavorless food and unleashing its latest umami which means savory. well, a london chef discovered that adding umami rich flavors like seaweed and wore worcestere sauce helped. they began working with a food research company that found by adding it, it actually kept

passengers happy without the added bloat. [laughter] usually you spice up airline meals. no salt, everyone's happy. ashley: yeah. give them lots of drink first. that's the reason they're -- tracy: seriesly, if you believe that, i've got a bridge to sell you. [laughter] ashley: food just doesn't taste good, bottom line. tracy: coming up, are american companies paying for the american spying scandal by losing customers overseas? cisco systems says it's hurting them. we're going to ask the chairman and ceo john chambers about that and how he plans to get his company back on track. dow's up 42 points, don't go anywhere. welcome back. how is everything? there's nothing like being your own boss! and my customers are really liking your flat rate shipping. fedex one rate. really makes my life easier. maybe a promotion is in order.

good news. i got a new title. and a raise? management couldn't make that happen. [ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex.

and this park is the inside of your body. see the special psyllium fiber in metamucil actually gels. and that gelling helps to lower some cholesterol. metamucil. 3 amazing benefits in 1 super fiber. ♪ ♪ liz: good afternoon, everybody, i'm liz claman, it is the last hour of trading on a busy, busy

day here with stocks on the rise again. bubble trouble is the talk of capitol hill, and that's what senators seem most concerned about today as today questioned fed chair nominee janet yellen. she says she sees no evidence of bubble-like conditions in the equity markets. no evidence of that. those comments seemed to relieve investors, all the major indices are moving higher today. if these gains hold through the close, it'll be the 37th record finish for the dow jones industrials. yes, about the 35th for the s&p 500, the 44th for the dow jones transports. look at these numbers as we are up about 43 points for the dow, the highs of the session up 58. so watch that number. janet yellen also addressed the issue of too big to fail. these are those financial institutions deemed so big and vital to the economy they cannot be permitted to collapse. here's what she said. >> too big to fail is damaging, it creates moral hazard,